Toronto, ON, Canada (March 12, 2015): Canada Pension Plan Investment Board (CPPIB) announced today that it has acquired 172,382,000 ordinary shares of HKBN Ltd. (“HKBN”) at a price of HK$9 per ordinary share as part of HKBN’s initial public offering. CPPIB invested HK$1,551 million (US$200 million), representing an approximate 17% ownership interest.
Founded in 1999, Hong Kong Broadband Network Limited is the second largest residential broadband service provider by number of subscriptions in Hong Kong. It owns and operates one of the largest fibre optic networks in Hong Kong, reaching more than 2.1 million residential homes and 1,900 commercial buildings.
“We are pleased to be making this Relationship Investment in HKBN, one of the leading providers of broadband services in Hong Kong,” said Scott Lawrence, Managing Director & Head of Relationship Investments, CPPIB. “As a cornerstone investor, we are delighted to begin a long-term partnership with HKBN’s talented management team, and look forward to working together to generate growth for the company,” added Mr. Lawrence.
“This investment fits well with Relationship Investments’ focus on providing strategic, long-term capital to leading public companies, like HKBN, where CPPIB can participate in the future success of the company and help create greater value through an ongoing partnership,” said Mr. Lawrence.
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, New York City and São Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2014, the CPP Fund totalled C$238.8 billion. For more information about CPPIB, please visit www.cppib.com.
About HKBN Ltd.
HKBN Ltd. (“HKBN”; SEHK Stock Code: 1310), operating through Hong Kong Broadband Network Limited, is the largest provider of residential fibre broadband services in Hong Kong by number of residential subscriptions, with a core purpose to “Make Our Hong Kong a Better Place to Live.” HKBN offers an array of world-class enterprise solutions, including broadband and data connectivity, voice communication, managed Wi-Fi solutions, Cloud solutions and IT advisory services, as well as a diversified portfolio of residential broadband and Wi-Fi access, communication and entertainment services. HKBN owns an extensive fibre network in Hong Kong, which covers over 2.1 million residential homes passed, representing approximately 79% of Hong Kong’s total residential units, and more than 1,900 commercial buildings. HKBN takes great pride in developing its 2,400 plus Talents into a competitive advantage.
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